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True Energy Trust Announces Closing of Saskatchewan Asset Divestiture and New Banking Arrangement

View All News Releases July 30, 2009


    CALGARY, July 30 /CNW/ - True Energy Trust ("True") is pleased to
announce that it has completed its previously announced divestiture of the
majority of its oil and natural gas assets in Saskatchewan for gross proceeds
of $93 million, prior to closing adjustments. The details of the transaction
and assets sold were set forth in True's press release dated July 8, 2009. Net
proceeds from the transaction have been utilized by True to reduce bank
indebtedness thereby providing True with the ability to move forward with
substantially improved financial flexibility.
    In conjunction with completion of the Divestiture, True has entered into
a new banking syndicate commitment that will provide True with a credit
facility of $85 million. The facility will consist of a $10 million demand
operating facility provided by one Canadian bank and a $75 million extendible
revolving term credit facility syndicated by one Canadian chartered bank and
one Canadian financial institution. The revolving period on the revolving term
credit facility will end on June 30, 2010, unless extended for a further 364
day period. Should the facilities not be renewed they will convert to 366 day
non-revolving term facilities on the renewal date. The borrowing base will be
subject to renewal on March 31, 2010.
    True's total net debt, excluding an unrealized commodity contract asset
of $13.8 million, future income taxes and asset retirement obligations, upon
completion of these dispositions is anticipated to be approximately $110
million, being approximately $28 million in net debt outstanding on the credit
facility including working capital adjustments and $82 million in convertible
debentures (liability component).
    On a go forward basis, True's production is forecast to be approximately
6,500 boe/d, comprised of 31.7 mmcf/d of natural gas and 1,230 bbls/d of
light/medium oil. True is forecasting a 2009 exit production rate of 7,000
boe/d based on normal decline rates and risked production adds from True's
capital program. True's capital expenditure program for the 3rd and 4th
quarters is anticipated to be approximately $10 million. Upon closing, True
will have 274,298 net acres of undeveloped land with 320 drilling locations
identified in the go forward portfolio.
    True has forward sold 65% of its natural gas production for Q3 - Q4 2009
for an average of $7.26 CAD/mcf and 21.5% of Q1 - Q2 2010 natural gas
production hedged at an average of $7.96 CAD/mcf. In addition, 500 bbl/d of
oil for Q3 - Q4 is hedged by way of a costless collar of $52.30 CAD x $80.70
    With its improved financial flexibility, True plans to seek opportunities
to consolidate assets that complement its focused asset base either through
geographic fit, technical expertise or future development potential.
    An updated corporate presentation has been posted at True Energy Trust is an exploration and production
oil and gas trust based in Calgary, Alberta, Canada.

    Forward Looking Statements: Certain information set forth in this news
release, including management's assessments of the future plans and
operations, expected production levels, capital expenditure levels and the
allocation thereof and wells to be drilled, may contain forward-looking
statements, and necessarily involve risks and uncertainties, certain of which
are beyond True's control, including risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets and other economic and industry conditions,
volatility of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, inability to
retain drilling services, incorrect assessment of value of acquisitions and
failure to realize the benefits therefrom, delays resulting from or inability
to obtain required regulatory approvals, the lack of availability of qualified
personnel or management, stock market volatility and ability to access
sufficient capital from internal and external sources and economic or industry
condition changes. Actual results, performance or achievements could differ
materially from those expressed in, or implied by, these forward-looking
statements and, accordingly, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or occur, or if
any of them do so, what benefits that True or its securityholders will derive
therefrom. Additional information on these and other factors that could affect
True are included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website (, at
True's website ( Furthermore, the forward-looking
statements contained in this news release are made as of the date of this news
release, and True does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be expressly
required by applicable securities law. BOE Disclosure: Barrels of oil
equivalent ("boe") may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

Bellatrix Exploration Ltd.
1920, 800 5th Avenue SW
Calgary, Alberta T2P 3T6
Main: 403-266-8670
Fax: 403-264-8163
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